PUBLIC PURCHASINGIN FLORIDAPROCUREMENT METHODS(REV. 9/18/2007)

PROCUREMENT METHODSGENERALLY AVAILABLE, All Jurisdictions: Small purchaseInvitation to Bid (ITB)Request for Proposal (RFP)Single source/Sole sourceEmergency

FLORIDA SPECIFIC, TO BE APPLIED TO ANY REQUISITION THAT CROSSES A STATE AGENCY PURCHASING DESKFirst consider in-place agreements:State Term Contract (possibly RFQ)FARF workshop (RESPECT)Correctional work program (PRIDE)Agency Term ContractState Purchasing AgreementAlternate Contract Source

FLORIDA SPECIFIC, TO BE APPLIED TO ANY REQUISITION THAT CROSSES A STATE AGENCY PURCHASING DESK (2)Second, consider sourcing from scratch.Discretionary purchaseExempt purchaseInformal competitive purchase (quote, informal bid)Formal competitive: ITB, RFP, ITNSingle sourceEmergencyIMPORTANT TO CODE CORRECTLY IN MFMP

PROCUREMENT METHODS

State Term Contracts

STATE TERM CONTRACTSSTCs are requirements contracts entered into by State Purchasing pursuant to s.287.042 & s.287.056(1) Fla. Statutes & 60A-1.002(4)(m) & 60A-1.044(2)(a), FACThey combine common requirements to achieve deep discounts, and to provide administrative efficienciesState agencies must use state term contracts unless certain exceptions applyEligible users, including state universities and political subdivisions may use STCs

OBJECTIVES OF STATE TERM CONTRACTINGOur goal is to deliver State term contracts, strategically sourced, administratively easy to use, with the best value (prices, item/service quality, terms and conditions) obtainable by a customer of our stature.

STATE TERM CONTRACTSThere are some multi-vendor state term contracts (vehicles, copiers, IT consulting, others), based on a variety of factors:SpecificationsGeographic areaAcquisition method (e.g. outright purchase or lease)Competition among state contractors

State Term Contractshttp://dms.myflorida.com/business_operations/state_purchasing/vendor_information/state_contracts_agreements_and_price_lists/state_term_contracts

State Term Contracts

State Term Contracts

State Term Contracts

State Term Contracts

State Term Contracts

State Term Contracts

State Term Contracts

State Term Contracts

CONTRACT EXCEPTIONSThe use of state term contracts is mandatory for agencies [Rule 60A-1.044(2), FAC], optional for other eligible users.Florida purchasing rules indicate acceptable reasons, and the process to follow [Rule 60A-1.044(3), FAC].Some STCs include some degree of built in exception authority.

REASONS FOR CONTRACT EXCEPTION PURSUANT TO RULE 60A-1.044(3) FACCritical delivery schedules which the ST contractor cannot provide.Need for compatibility with existing equipment.Non-availability of service.Applications of unique technical requirements, product quality or specifications that differ from those of the contract commodities or services.

REASONS FOR CONTRACT EXCEPTION PURSUANT TO RULE 60A-1.044(3) FACExceptions are also authorized ifThe purchase does not exceed the greater of $250 or any other amount authorized in the contract, orThe state term contract is expressly designated as a non-exclusive contract.

CONTRACT EXCEPTION PROCEDURE [60A-1.044(3)(b) FAC]Exceptional purchases shall be documented by the agency making those purchases.The agency shall determine the conditions and circumstances justifying the purchase.Note: Exceptions exceeding Category Two are subject to the competitive or other sourcing requirements of statute and rule.

PROCUREMENT METHODS

FARF workshop (RESPECT)

FARF workshop (RESPECT)Requirements are established in Chapter 413, Florida StatutesDMS authority & responsibility are established by s.413.035 and s. 287.042(1)(g), Florida Statutes413.031 Products, purchase by state agencies and institutions:Any purchasing officer who violates the provisions of this section shall be guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.

Rule 60E 1.005(3)(d), F.A.C.If a commodity or service is available from both an employment center and under a state term contract, the agency or eligible user may purchase such commodity or service from whichever of the two procurement options provides the best value to the agency or eligible user.

FARF workshop (RESPECT)Fla. Stat. 775.082 & 775.083 775.082 Penalties; applicability of sentencing structures; mandatory minimum sentences for certain re-offenders previously released from prison.775.083 Fines. RESPECT Web site at www.respectofflorida.org

FARF workshop (RESPECT)S.413.036(1): If any agency intends to procure any product or service on the procurement list, that agency shall, procure such product or service from a qualified nonprofit agency if the product or service is available within a reasonable delivery time. this act shall have precedence over any law requiring state agency procurement of products or services from any other nonprofit corporation ...

FARF workshop (RESPECT)413.036(4)No similar product or service of comparable price and quality may be purchased from any source other than the nonprofit agency for the blind or for the severely handicapped if the nonprofit agency certifies that the product is manufactured or supplied by, or the service is provided by, the blind or the severely handicapped and the product or service meets the comparable performance specifications and comparable price and quality requirements as determined by the department or an agency.

FARF workshop (RESPECT)S.413.036(2): The provisions of part I of chapter 287 do not apply to any purchase of commodities or contractual services made by any legislative, executive, or judicial agency of the state from a qualified nonprofit agency for the blind or for the other severely handicapped.

FARF workshop (RESPECT)S. 413.036(3)If, pursuant to a contract between any legislative, executive, or judicial agency of the state and any private contract vendor, a product or service is required by the Department of Management Services or on behalf of any state agency that is included on the procurement list established by the commission pursuant to s. 413.035(2), the contract must contain the following language:

FARF workshop (RESPECT)"IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ANY ARTICLES THAT ARE THE SUBJECT OF, OR REQUIRED TO CARRY OUT, THIS CONTRACT SHALL BE PURCHASED FROM A NONPROFIT AGENCY FOR THE BLIND OR FOR THE SEVERELY HANDICAPPED THAT IS QUALIFIED PURSUANT TO CHAPTER 413, FLORIDA STATUTES, IN THE SAME MANNER AND UNDER THE SAME PROCEDURES SET FORTH IN SECTION 413.036(1) AND (2), FLORIDA STATUTES; AND FOR PURPOSES OF THIS CONTRACT THE PERSON, FIRM, OR OTHER BUSINESS ENTITY CARRYING OUT THE PROVISIONS OF THIS CONTRACT SHALL BE DEEMED TO BE SUBSTITUTED FOR THE STATE AGENCY INSOFAR AS DEALINGS WITH SUCH QUALIFIED NONPROFIT AGENCY ARE CONCERNED."

PROCUREMENT METHODSCorrectional work program (PRIDE)

CORRECTIONAL WORK PROGRAM (PRIDE)Requirements are established in Chapter 946, Florida StatutesDMS authority & responsibility are established by s.946.515 and s. 287.042(1)(d-f), Florida Statutes

CORRECTIONAL WORK PROGRAM (PRIDE) Legislative intent (Chapter 946, FS):To reinforce relevant education, training, and post release job placement and help reduce recommitmentTo serve the security goals of the state through the reduction of idleness of inmates and to provide incentives for good behaviorTo reduce the cost of state government by operating enterprises primarily with inmate labor

CORRECTIONAL WORK PROGRAM (PRIDE)To serve the rehabilitative goals of the state by duplicatingthe operating activities of a free-enterprise type of profit making enterpriseTo aid inmates in adjustment after release and to prepare inmates for gainful employmentThe state shall have a continuing interest in assuring continuity and stability in the operation The corporation will devise and operate correctional work programs to utilize inmates of all custody levels, with specific emphasis on reducing idleness among close custody inmates.

CORRECTIONAL WORK PROGRAM (PRIDE)No similar product or service of comparable price and quality found necessary for use by any state agency may be purchased from any source other than the corporation if the corporation certifies that the product is manufactured by, or the service is provided by, inmates (http://www.pride-enterprises.org) and the product or service meets the comparable performance specifications and comparable price and quality requirements as specified under s. 287.042(1)(f) or as determined by an individual agency as provided in this section. The purchasing authority of any such state agency may make reasonable determinations of need, price, and quality with reference to products or services available from the corporation. (s.946.515 FS)

Pride Productshttp://dms.myflorida.com/business_operations/state_purchasing/vendor_information/state_contracts_agreements_and_price_lists/pride

Pride Products

CORRECTIONAL WORK PROGRAM (PRIDE)In the event of a dispute between the corporation and any purchasing authority based upon price or quality under this section or s. 287.042(1)(f), either party may request a hearing with the Department of Management Services and if not resolved, either party may request a proceeding pursuant to ss. 120.569 and 120.57, which shall be referred to the Division of Administrative Hearings

CORRECTIONAL WORK PROGRAM (PRIDE)120.57 Additional procedures for particular cases.-- (1)ADDITIONAL PROCEDURES APPLICABLE TO HEARINGS INVOLVING DISPUTED ISSUES OF MATERIAL FACT. 120.569 Decisions which affect substantial interests.

CORRECTIONAL WORK PROGRAM (PRIDE)S.946.515(4)The provisions of part I of Chapter 287 do not apply to any purchases of commodities or contractual services made by any legislative, executive, or judicial agency of the state from the corporation. Exception: Printing (ref.283.33 FS).

Correctional work program (PRIDE)S.946.515(6)If, pursuant to a contract between any agency and any private contract vendor, a product or service is required (and) is certified by or is available from the corporation , and has been approved in accordance with subsection (2), the contract must contain the following language:

CORRECTIONAL WORK PROGRAM (PRIDE)IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ANY ARTICLES WHICH ARE THE SUBJECT OF, OR REQUIRED TO CARRY OUT, THIS CONTRACT SHALL BE PURCHASED FROM THE CORPORATION IDENTIFIED UNDER CHAPTER 946, F.S., IN THE SAME MANNER AND UNDER THE SAME PROCEDURES SET FORTH IN SECTION 946.515(2), AND (4), F.S.; AND FOR PURPOSES OF THIS CONTRACT THE PERSON, FIRM, OR OTHER BUSINESS ENTITY CARRYING OUT THE PROVISIONS OF THIS CONTRACT SHALL BE DEEMED TO BE SUBSTITUTED FOR THIS AGENCY INSOFAR AS DEALINGS WITH SUCH CORPORATION ARE CONCERNED.

CORRECTIONAL WORK PROGRAM (PRIDE)PRIDE price agreements with DMS are available at: http://www.pride-enterprises.org

Other PRIDE products are available through the PRIDE web site at http://www.pride-enterprises.org

PROCUREMENT METHODSAgency Term Contract

AGENCY TERM CONTRACTA term contract is defined in s.287.012(28) as an indefinite quantity contract to furnish commodities or contractual services during a defined period.An agency, like State Purchasing, can and should examine repetitive small purchases to determine the possibility of consolidation (aggregation) into a term contract.

AGENCY TERM CONTRACTThe purpose of an agency term contract is for that agency similar to the purpose of a state term contract:To combine common requirements in order to achieve deep discounts, and to provide administrative efficiencies.

AGENCY TERM CONTRACTMethods of soliciting an agency term contract can include:Informal bidInvitation to BidRequest for ProposalInvitation to NegotiateSingle SourceEmergency

Agency Term ContractAgency Term Contracts can be established to enable

Definite quantity/schedule purchase ordersIndefinite quantity/schedule blanket term purchase ordersTerm purchase orders with definite and indefinite quantity/schedule line itemsIndividual delivery/performance purchase ordersPurchasing card transactionsAll of the above

STATE PURCHASING AGREEMENTShttp://dms.myflorida.com/business_operations/state_purchasing/vendor_information/state_contracts_agreements_and_price_lists/state_purchasing_agreements

STATE PURCHASING AGREEMENTS Reflect a policy change implemented Jan. 16, 2004, to replace vendor-driven, non-competitive SNAPS agreements with buyer-driven competitive state purchasing agreements.

Are solicited by State Purchasing informally upon buyer request accompanied by commodity specifications and/or a contractual services statement of work.

STATE PURCHASING AGREEMENTINTENDED USEThe SPA is intended for individual purchases not exceeding the state agency bid threshold, Category 2 ($25,000)If purchases exceeding the bid threshold for state agencies ($25,000) are foreseen during the term of the SPA, the buyer cannot use the SPA, but must combine and bid the requirements.

STATE PURCHASING AGREEMENTThe form for requesting a SPA and the terms and conditions applicable are posted on the State Purchasing web site at http://dms.myflorida.com/business_operations/state_purchasing/documents_forms_references_resources (PUR 7721)

STATE PURCHASING AGREEMENTState Purchasing Agreements are at least, 12 month agreements (and some have renewal(s)) with a single or multiple awarded vendor(s) per item or service or area, or combination thereofEach SPA is available for use by both state agencies and other eligible users, but is not mandatory for any user

STATE PURCHASING AGREEMENTADVANTAGESMore competitive than a one-time informal bid by one buyerAfter specs are developed, State Purchasing provides the terms & conditions, and has primary responsibility for the solicitation, evaluation and awardResulting agreement available for other transactionsUsage not mandatory; may be used as benchmark for negotiation or further competition.DISADVANTAGEMay require more time than a one-time informal bid by one buyer

PROCUREMENT METHODSALTERNATE CONTRACT SOURCE

ALTERNATE CONTRACT SOURCEAmong powers & duties of the division, s. 287.042(16) FS allows State Purchasing to evaluate contracts let by the Federal Government, another state, or a political subdivision for the provision of commodities and contract servicesauthorizing an agency to make purchases .

ALTERNATE CONTRACT SOURCEFurther authority is contained inS.287.057(5)(b) FS, as an exception to bidding, along with emergency and single source purchasesRule 60A-1.047, FAC, referencing term contracts or requirements contracts competitively established by other governmental entities.

ALTERNATE CONTRACT SOURCEThe form for requesting an alternate contract source is available on the State Purchasing web site athttp://dms.myflorida.com/business_operations/state_purchasing/documents_forms_references_resources (PUR 7102)

ALTERNATE CONTRACT SOURCECaveats before deciding:Consider whether market conditions have changed and whether the contract price is indexed.Consider whether the quantity priced was more or less than the quantity you wish to purchase and the possible impact of price breaks.Consider applicability of the terms and conditions.Obtain vendor consent.

PROCUREMENT METHODSDiscretionary purchase

DISCRETIONARY PURCHASEDiscretionary purchases are small purchases under the $2,500 threshold requiring informal bids in accordance with Rule 60A-1.002(2), FAC.The rule advises good purchasing practices, which may include quotes.As with bid thresholds, consider per purchasing office, and do not divide.

PROCUREMENT METHODSEXEMPT PURCHASE

EXEMPT PURCHASECurrent Florida law and administrative rules exempt some purchases from competitive requirements.Some statutory exemptions include language requiring some degree of competitionMany agencies already use formal 287 competitive procedures for some exempt purchases.

EXEMPT PURCHASEExemptions fall into three categories:Exempt only by reason of the commodity or service to be purchased.Exempt only by reason of the vendor/contractor selected.Exempt by reason of both the commodity or service and the vendor/contractor.

EXEMPT PURCHASECurrent exemptions, basis & referenceCommodities purchased for resale. Exemption independent of vendor. Ref. s. 287.012(5) FS.Prescriptive assistive devices, e.g. prosthetics, orthotics, wheelchairs. Exemption independent of vendor. Ref. s. 287.057(5)(e) FS.

EXEMPT PURCHASECurrent exemptions, basis & reference, cont.Artistic services. Exemption independent of vendor. Ref. s. 287.057(5)(f)1. FS. Artist defined in s.287.012(3) FS. Academic program reviews. Exemption independent of vendor. Ref. s. 287.057(5)(f)2. FS.

EXEMPT PURCHASECurrent exemptions, basis & reference, cont.Lectures by individuals. Exemption independent of vendor. Ref. s. 287.057(5)(f)3. Auditing services. Ref. s. 287.057(5)(f)4.Legal services, incl. attorney, paralegal, expert witness, appraisal, or mediator services. Ref. s. 287.057(5)(f)5.

EXEMPT PURCHASECurrent exemptions, basis & reference, cont.Health services. Ref. s. 287.057(5)(f)6.Services provided to persons with mental or physical disabilities by not-for-profit corporations. Requires consideration of price and other factors. Exemption considers both the service and the source. Ref. s. 287.057(5)(f)7.

EXEMPT PURCHASECurrent exemptions, basis & reference, cont.Medicaid services by a health care provider who has not received a provider number, exemption valid 90 days. Exemption considers both the service and the source. Ref. s. 287.057(5)(f)8.Family placement services. Exemption independent of vendor. Ref. s. 287.057(5)(f)9.

EXEMPT PURCHASECurrent exemptions, basis & reference, cont.Prevention services related to mental health, and shelters for runaways operated by non-profits. Requires consideration of price and other factors. Exemption considers both the service and the source. Ref. s. 287.057(5)(f)10.

EXEMPT PURCHASECurrent exemptions, basis & reference, cont.Training & education services provided to injured employees. Exemption independent of vendor. Ref. s. 287.057(5)(f)11.Contracts pursuant to s. 337.11 FS: the construction and maintenance of all roads.... rest areas, weigh stations, and other structures, including roads, parking areas, supporting facilities and associated buildings. Exemption independent of vendor. Ref. s. 287.057(5)(f)12.

EXEMPT PURCHASECurrent exemptions, basis & reference, cont.Services or commodities provided by governmental agencies. Exemption independent of commodity or service. Ref. s. 287.057(5)(f)13. Use definition of agency in s. 163.3164, FS:(a)The United States or any department, commission, agency, or other instrumentality thereof. (b)This state or any department, commission, agency, or other instrumentality thereof. (c)Any local government, as defined in this section, or any department, commission, agency, or other instrumentality thereof. (d)Any school board or other special district, authority, or governmental entity.

EXEMPT PURCHASECurrent exemptions, basis & reference, cont.Continuing education events or programs offered to the general public and for which fees collected pay all expenses. Exemption independent of vendor. Ref. 287.057(5)(g) FS.

EXEMPT PURCHASEExemptions per Rule 60A-1.002(3)FACRegulated utilities & govt. franchised servicesRegulated public communications except long distancePromotional servicesfrom donated funds by the Secretary of StatePayments for membership dues pursuant to s.216.345Examinations approved per s.455.217(1)(c)Adoption placement services

PROCUREMENT METHODSINFORMAL COMPETITIVE PURCHASE (QUOTE)

INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID)

Chapter 287 FS requires competitive purchases over $25,000, with some exceptions, and is silent on smaller purchases.Rule 60A-1.002(3), FAC, addresses informal bids, $2,500 through $25,000.

INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID)Requirements of rule 60A-1.002 are simple:Obtain informal bids in writing, or make a written record.If fewer than two quotes are received, document why.Document if proceeding with a single source and/or negotiated purchase.

INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID)Remember: In determining the bid threshold, do not consider only the immediate transaction. Consider requirements for that commodity class and group on an agency-wide (or purchasing office area-wide) basis [ref. 60A-1.002(5) Fla. Admin. Code].

In all Procurements RememberAn agency shall not divide the procurement of commodities or contractual services so as to avoid the requirements of subsections 287.057(1) through (5) Fla. Stat.Fla.Stat. 287.057(10)Is this enforceable by the Purchasing Department? If so, HOW?

INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID)As in formal bidding, announce all requirements, terms and conditions, relevant dates, and selection criteria. Treat all vendors alike: No disclosures or collusion to favor one over another.AWARD NEED NOT BE BASED ON RESPONSIVENESS AND PRICE ALONE! CAN DO A MINI RFP OR MINI ITN.

PROCUREMENT METHODSFORMAL COMPETITIVE PUCHASES: ITB, RFP, ITN

FORMAL COMPETITIVE: ITB, RFP, ITNSection 287.057, Florida Statutes, and Rule 60A-1.002(4), Florida Administrative Code, require formal competitive solicitations for purchases exceeding Category Two (287.012, FS).Exceptions include exempt purchases, and single source and emergency purchases.

FORMAL COMPETITIVE: ITB, RFP, ITNThe formal competitive methods areInvitation to BidRequest for ProposalInvitation to Negotiate

FORMAL COMPETITIVE: ITB, RFP, ITNThese methods are ranked in order of preference.ITB is the first choice, with written justification required for one of the other choices.

FORMAL COMPETITIVE: ITB, RFP, ITNRFP is the second choice, requires justification as to why an ITB is not practicable [287.057(2)(a) Fla. Stat.] and is in fact the second most price-driven solution.ITN requires justification as to why neither of the others will result in best value [287.057(3)(a) Fla. Stat.]

FORMAL COMPETITIVE: ITB, RFP, ITNBest value is defined as the highest overall value based on objective factors not limited to price, quality, design, and workmanship. [s.287.012(4) Fla. Stat.]

FORMAL COMPETITIVE: ITB, RFP, ITNNote that while ranked from most price-driven to least price-driven (lets discuss!), the ranking also moves from least to greatest flexibility!Note also that they are ranked from least to most complex, and least to most time consuming!

FORMAL COMPETITIVE: ITB, RFP, ITNLets considerReasons for choosing one or the otherAdvertising the solicitationSpecifications/Statement of WorkVendor inputResponsiveness & ResponsibilityEvaluation criteria and their weights, including price & other factors

REASONS FOR CHOOSING AN ITBStandard off-the-shelf products are known to meet the needStandard services of a usual commercial type and price structure, especially technical or non-professional services, such as custodial or waste removal services, or equipment maintenance are known to meet the needFilling an immediate need one or a few times, or fulfilling a long term requirement with repetitive deliveries of same or similar products/services

REASONS FOR CHOOSING AN ITBWide competition is availableThe agency desires to fulfill the requirement at the lowest possible price consistent with at least meeting its minimum standards.The vendors experience, education, understanding of your mission, etc., dont greatly impact the agencys results.

REASONS FOR CHOOSING AN ITBAny concerns about vendor qualifications can be easily addressed by a simple submittal with the bid, e.g. copy of occupational license, certification by the manufacturer that vendor is a trained/authorized provider, three satisfactory references, etc.

ADVERTISING THE ITBThe ITB must be made available simultaneously to all vendors [287.057(1)(a)].Advertising is required for a minimum of 10 calendar days [s.287.042(3)(b)(1)], unless the agency determines in writing that a shorter period is necessary to avoid harming the interests of the state.A longer period may be advisable to assure adequate competition. 30 days may be reasonable.

SPECIFICATIONS/STATEMENT OF WORK, ITBSpecs/SOW designed to avoid restrictive specifications and obtain maximum competitionDeliverables are clearly and unequivocally spelled outAny product or service from a responsible vendor, meeting or exceeding the requirements, will be considered for award based on price

VENDOR INPUT, ITBAny necessary market research is conducted prior to solicitationVendor conferences are more the exception than the ruleVendors have a limited time period to ask questions (up to 10 days before bid opening or as otherwise specified)Disputes must be noticed within 72 hours of public posting of the ITB

RESPONSIVENESS & RESPONSIBILITY, ITBResponsive bid means a bid that conforms in all material respects to the solicitation. (Material means bid meets mandatories indicated by must, shall and will {usually}, allows for comparison with other offers, and does not include additional cost to the state or deviations which confer a competitive advantage).

RESPONSIVENESS & RESPONSIBILITY, ITBMandatory evaluation criteria reflect the factors and considerations that are essential to the requirement. Bidders must comply with these mandatory criteria. Words such as must, will, and shall are used t reflect the mandatory nature of each factor.

RESPONSIVENESS & RESPONSIBILITY, ITBClauses containing mandatory language criteria must be clear and specific as to expectations of the bidder. It is the responsibility of the purchasing agent to ensure that the bidders can meet the conditions for compliance. NIGP Sourcing in the Public Sector first edition (2004) - page 194 Responsiveness & Responsibility criteria for all procurements!

RESPONSIVENESS & RESPONSIBILITY, ITBResponsible denotes a vendor who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. [287.012(24)]

RESPONSIVENESS & RESPONSIBILITY, ITBWhile vendor capability is not scored, responsibility can be considered:Review suspended and convicted vendor listsUse complaints for tie breakers

RESPONSIVENESS & RESPONSIBILITY, ITBMake certain that any necessary responsibility indicators are mandatory, such as, occupational licensing, employee training and certification, certification of years in business, minimum number of verifiable references of satisfactory service, location proximate to the work, D & B rating, etc.Require bonding and/or insurance if appropriate to mitigate risk

RESPONSIVENESS & RESPONSIBILITY, ITBConsider at the time of evaluation any other relevant information you may obtain, e.g. from the company web site or other business related sites, or from state records.

EVALUATION CRITERIA & WEIGHTSAll applicable terms and conditions, including the criteria to be used in determining acceptability must be stated in the ITB.Include the price for each year for which the contract may be renewed.Criteria not set forth may not be used.Ref. s.287.057(1) FS

EVALUATION CRITERIA & WEIGHTSBidders are compared to each other only as to price. The low responsive bid from a responsible bidder gets the award.

REASONS FOR CHOOSING AN RFPIt is not practicable to specifically define the scope of work, and the vendor will propose [287.012(22)].Professional and technical expertise and quality of the vendor and proposed offering are critical to success.Requirements include non-standard products/services, with some flexibility in what is ultimately purchased.

REASONS FOR CHOOSING AN RFP4.The agency seeks to balance price and quality to achieve the best value.There are believed to be more than two or three vendors who can submit a satisfactory offer.The agency does not anticipate a need to revise the solicitation and proposals after initial receipt.Document the reason an ITB was not used [287.057(2)(a) FS]

ADVERTISING THE RFPThe RFP must be made available simultaneously to all vendors [287.057(2)]. Advertising is required for a minimum of 10 calendar days [s.287.042(3)], unless the agency determines in writing that a shorter period is necessary to avoid harming the interests of the state.A longer period may be advisable to assure adequate competition. 42-60 days may be reasonable.

SPECIFICATIONS/STATEMENT OF WORK, RFPSpecs/SOW designed to avoid restrictive specifications and obtain maximum competition.Objectives, outcomes, performance specifications and measures are set forth, in addition to any commodity specifications or service outputs.A proposal from a responsible vendor, meeting or exceeding the requirements, will be considered for award based on price and other factors which make it the most advantageous to the state [287.057(2)].

VENDOR INPUT, RFPMarket research is conducted prior to solicitationDisputes must be noticed within 72 hours of public posting of the RFPVendor conferences are more the rule than the exceptionVendors are invited to submit questions prior to and during a pre-proposal conference.

VENDOR INPUT, RFPVendor questions and tentative answers are discussed at a pre-proposal conference, with the aim of learning from the vendors of any ambiguities, omissions, contradictions, or other possibly better terms and conditions that can be considered to improve the RFP, and assisting the vendors to understand the agencys requirements and objectives.A written addendum providing official answers and changes to the solicitation will be published following the conference.

VENDOR INPUT, RFPDiscussions may be held to clarify offers, if allowed by the terms of the RFP.

RESPONSIVENESS & RESPONSIBILITY, RFPResponsive proposal means a proposal that conforms in all material respects to the solicitation. (Material means bid meets mandatories indicated by must, shall and will {usually}, allows for comparison with other offers, and does not include additional cost to the state or deviations which confer a competitive advantage).

RESPONSIVENESS & RESPONSIBILITY, RFPMandatory evaluation criteria reflect the factors and considerations that are essential to the requirement. Bidders must comply with these mandatory criteria. Words such as must, will, and shall are used t reflect the mandatory nature of each factor.

RESPONSIVENESS & RESPONSIBILITY, RFPClauses containing mandatory language criteria must be clear and specific as to expectations of the bidder. It is the responsibility of the purchasing agent to ensure that the bidders can meet the conditions for compliance. NIGP Sourcing in the Public Sector first edition (2004) - page 194 Responsiveness & Responsibility criteria for all procurements!

RESPONSIVENESS & RESPONSIBILITY, RFPResponsible denotes a vendor who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. [287.012(24)]

RESPONSIVENESS & RESPONSIBILITY, RFPVendor capability is typically scored, and is a factor in determining the award. In addition, responsibility can be considered similarly to an ITB process:review suspended and convicted vendor listsuse complaints for tie breakers

RESPONSIVENESS & RESPONSIBILITY, RFPMake certain responsibility indicators mandatory, such as, occupational licensing, employee training and certification, certification of years in business, minimum number of verifiable references, location proximate to the work, D & B rating, etc.Require bonding and/or insurance if appropriate to mitigate risk

RESPONSIVENESS & RESPONSIBILITY, RFPConsider at the time of evaluation any other relevant information you may obtain, e.g. from the company web site or other business related sites, or from state records.

EVALUATION CRITERIA & WEIGHTSAll applicable terms & conditions, including the criteria to be used in determining acceptability, which shall include but need not be limited to price, must be stated in the RFP.Include the price for each year for which the contract may be renewed.Award shall be to the proposal determined in writing to be the most advantageous, taking into consideration price & the other criteria set forth in the RFP.Ref. s.287.057(2) FS

EVALUATION CRITERIA & WEIGHTSRespondents are compared to each other as to price and the other criteria identified in the RFP, such as qualifications and proposed processes, equipment and services (solutions). The highest scoring responsive proposal from a responsible vendor gets the award, as the most advantageous to the state.

REASONS FOR CHOOSING AN ITNNegotiations may be necessary to receive the best value [287.057(3)(a) FS.]Non-standard or customized products/services or systems.High complexity.Emphasis on technology.

REASONS FOR CHOOSING AN ITNProcess re-engineering may be included.Innovative solutions may be required.Performance based contract may be sought.Outsourcing of governmental functions is included.

REASONS FOR CHOOSING AN ITNHighly professional service requirements.Limited availability of competition.Multiple options for achieving the desired results.Uncertainty of how much of the wish list can be had within budget or time requirements, and willingness to adjust.

REASONS FOR CHOOSING AN ITNMission critical for the agency.Significant portion of the agencys procurement budget.Long term relationship with the contractor.Price is important but not enough by itself to select from among the responsive offers.A written determination for selecting an ITN process is required [s.287.057(3)].

ADVERTISING THE ITNThe ITN must be made available simultaneously to all vendors [287.057(3)]. Advertising is required for a minimum of 10 calendar days [s.287.042(3)], unless the agency determines in writing that a shorter period is necessary to avoid harming the interests of the state.A longer period may be advisable to assure adequate competition. 42-60 days may be reasonable.

ADVERTISING THE ITNTypically, competitive negotiations are a two-step process. In the first step, respondents are ranked, and a short list of firms to participate may be developed, and in the second step, negotiations are conducted with the top ranked or short-listed firms to arrive at the award of a contract. This requires additional time, usually 3 or more meetings at weekly intervals with each negotiating firm.

SPECIFICATIONS/STATEMENT OF WORK, ITNSpecs/SOW designed to avoid restrictive specifications and obtain maximum competition.Objectives, outcomes, performance specifications and measures are set forth, in addition to any commodity specifications or service outputs.A best-and-final offer (BAFO) from a responsible vendor, meeting or exceeding the requirements, will be considered for award based on price and other factors which make it the most advantageous to the state [287.057(3)].

VENDOR INPUT, ITNMarket research is conducted prior to solicitationDisputes must be noticed within 72 hours of public posting of the ITBVendor conferences are more the rule than the exceptionVendors are invited to submit questions prior to and during a pre-proposal conference.

VENDOR INPUT, ITNVendor questions and tentative answers are discussed at a pre-proposal conference, with the aim of learning from the vendors of any ambiguities, omissions, contradictions, or other possibly better terms and conditions that can be considered to improve the RFP.A written addendum providing official answers and changes to the solicitation will be published following the conference.

VENDOR INPUT, ITNAfter the vendors are selected for participation in negotiations, it may be useful to hold a debriefing meeting with each in turn, more fully explaining the states view of their initial proposal, how it may be improved, and asking any questions the team has that may lead to revisions of our requirements or the vendor proposals.

VENDOR INPUT, ITNMeet separately with each selected vendor for fact finding and proposal development. And, be open to further revisions of the requirements document. If useful during one of these negotiation process meetings, theres nothing wrong with taking a break during a meeting for the parties to confer separately, call home, or whatever, and then reconvene.

VENDOR INPUT, ITNNegotiation offers the greatest flexibility of the three methods discussed, allowing both the requirements of the agency and the proposal of the respondent to be repeatedly improved after the initial solicitation and response. The agency may obtain maximum value from the vendors expertise, by encouraging vendors to offer suggestions for requirements and solutions, and price/quality trade-offs.

VENDOR INPUT, ITNIn addition, the purchasing officer guiding the ITN process can craft it so that technical errors of responsiveness or responsibility, which often plague the ITB and RFP processes, resulting in exclusion from consideration of what may be the best offer, or litigation, can be resolved at the negotiation table.

RESPONSIVENESS & RESPONSIBILITY, ITNResponsive proposal or best-and- final offer (BAFO) means a proposal that conforms in all material respects to the solicitation. (Material means offer meets mandatories indicated by must, shall and will {usually}, allows for comparison with other offers, and does not include additional cost to the state or deviations which confer a competitive advantage).

RESPONSIVENESS & RESPONSIBILITY, ITNMandatory evaluation criteria reflect the factors and considerations that are essential to the requirement. Bidders must comply with these mandatory criteria. Words such as must, will, and shall are used to reflect the mandatory nature of each factor.

RESPONSIVENESS & RESPONSIBILITY, ITNClauses containing mandatory language criteria must be clear and specific as to expectations of the bidder. It is the responsibility of the purchasing agent to ensure that the bidders can meet the conditions for compliance. NIGP Sourcing in the Public Sector first edition (2004) - page 194 Responsiveness & Responsibility criteria for all procurements!

RESPONSIVENESS & RESPONSIBILITY, ITNResponsible denotes a vendor who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. [287.012(24)]

RESPONSIVENESS & RESPONSIBILITY, ITNVendor capability is typically scored, and is a factor in determining the award. In addition, responsibility can be considered similarly to an ITB process:Review suspended and convicted vendor listsMake certain responsibility indicators mandatory, such as, occupational licensing, employee training and certification, certification of years in business, minimum number of verifiable references, location proximate to the work, D & B rating, etc.

RESPONSIVENESS & RESPONSIBILITY, ITNUse complaints for tie breakers Require bonding and/or insurance if appropriate to mitigate riskConsider at the time of evaluation any other relevant information you may obtain, e.g. from the company web site or other business related sites, or from state records.

EVALUATION CRITERIA & WEIGHTSAll applicable terms & conditions, including the criteria to be used in determining acceptability, must be stated in the ITN.Include the price for each year for which the contract may be renewed.Evaluate & rank responsive replies.Select one or more vendors to commence negotiations.

EVALUATION CRITERIA & WEIGHTSAward shall be to the proposal determined in writing to offer the best value to the state.The contract file must contain a statement that explains the basis for the vendor selection, and sets forth the deliverables and price, and how they provide best value.Ref. s.287.057(3)(b) FS

EVALUATION CRITERIA & WEIGHTSRespondents are compared to each other as to price and the other criteria identified in the ITN, such as qualifications and proposed processes, equipment and services (solutions). The best value gets the award. This would be reflected as the highest scoring responsive best-and-final offer from a responsible vendor.

OTHER NEGOTIATION PROCESSESInformal negotiations may be conducted with or between State Contract, State Purchasing Agreement and agency contract vendors, or a combination thereof.Informal negotiations may be conducted with single source vendors.Informal negotiations may be conducted with exempt vendors.Informal negotiations may be conducted with incumbent vendors due to changes in circumstances or objectives, or at renewal decision points.

PROCUREMENT METHODSSINGLE SOURCE

SINGLE SOURCEfair and open competition is a basic tenet of public procurement; competition reduces the appearance and opportunity for favoritism and inspires public confidence that contracts are awarded equitably 287.001, FS

SINGLE SOURCEAUDITOR GENERAL BILL MONROES REPORT IN 2001 CRITICIZED INAPPROPRIATE USE OF SINGLE SOURCE, ADVOCATED WEB POSTING.THIS LED TO SECTION 15 OF HB1977 IN 2002 REVISING S.287.057 ON SINGLE SOURCES.

SINGLE SOURCES AS OF JULY 1, 2002Section 287.057(5)(c) applies.Single source descriptions must be posted on the web 7 business days.< $25,000 - > $25,000 ????Thereafter, if determined to proceed, post intended decision 3 business days, providing point of entry for protest.

SINGLE SOURCES AS OF JULY 1, 2002IF SINGLE SOURCE EXCEEDS CATEGORY 4, $150,000, REQUEST AUTHORITY FROM DMS BEFORE POSTING NOTICE OF INTENDED DECISION.DMS HAS 21 DAYS TO RESPOND.

SINGLE SOURCE60A-1.002(6) FAC: Over $25,000, persons taking part in the development or selection criteria for evaluation, the evaluation process, or the award process shall attest in writing that they are independent of and have no conflict of interest in, the entities evaluated and selected.

ELEMENTS OF SINGLE SOURCE DESCRIPTIONSS# ___ AGENCY ________Statutory reference if applicableCommodity or Service RequiredPerformance and/or Design ReqsIntended Source & PriceJustification for single sourceApproved byRequest for information

ELEMENTS OF NOTICE OF INTENDED DECISIONSS# ___ AGENCY _________Statutory referenceCommodity or Service RequiredPerformance and/or Design ReqsIntended Source & PriceJustification for single sourceApproved byPoint of entry language (Ch.120)

REQUEST FOR DMS APPROVALFurnish the information required on PUR 7777, available on State Purchasing Forms web siteAttach copies of advertisementAttach any responses from vendorsExplanation of rejection, if any offers receivedConfirmation of vendor registrations(MFMP)Submit by email to singlesource@dms.state.fl.us

JUSTIFYING A SINGLE SOURCEThere are few absolute single source products and services. Most single source purchases are situational. Consider the following:NECESSARY: Is this commodity or service necessary to accomplish the agencys task or mission?UNIQUE: Is this commodity or service, or some necessary features, unique to this source?If the answer isnt yes to BOTH, you do not have a legitimate single source.

JUSTIFYING A SINGLE SOURCECAVEAT EMPTOR: FOLLOWING THE SINGLE SOURCE POSTING REQUIREMENTS IS NOT SUFFICIENT TO KEEP YOU AND YOUR CUSTOMER OUT OF TROUBLE

MISUSING SINGLE SOURCE IS A FELONYS.838.22, Florida Statutes: IT IS UNLAWFUL FOR A PUBLIC SERVANT, WITH CORRUPT INTENT TO CIRCUMVENT A COMPETITIVE BIDDING PROCESSBY USING A SOLE-SOURCE CONTRACTANY PERSON WHO VIOLATES THIS SECTION COMMITS A FELONY

WHAT TO DOWHEN IN DOUBT, BID IT OUTCOMPETITION VS. SINGLE SOURCE ROUTINELY SAVES 10%-30%AVOID SINGLE SOURCE FOLLOW-ONS TO COMPETITIVE PURCHASES: CONSIDER LONGER TERM COMPETITIVE CONTRACTS WITH ADDITION/DELETION CLAUSES, AND PRICING TIED TO INDICES

WHAT TO DOTAKE RESPONSIBILITY. Dont hesitate to state your position to your customers. Your authority as a state purchasing agent is limited to lawful activities. Document your file.COMMUNICATE. Dont accept requests for single sources without comment. Explain requirements and the reasons for them. Cite the statutes.Provide effective alternatives.

WHAT TO DOEven with single source vendors, it may be possible to negotiate more favorable terms. Do your homework, be proactive.

PERSPECTIVECAVEAT: You are not the Supreme Court.You have a professional opinion.Your responsibility is commensurate with your authority.Higher authority may accept responsibility commensurate with its authority.

PERSPECTIVEIf you cant help them, they dont need you. Program areas do not exist to support administrative services. Au contraire.Always be prepared to offer effective alternatives, and take responsibility for helping.See point number one.

PERSPECTIVEIf your office is typically not included by agency decision makers early enough to work at maximum effectiveness in undertakings that require major purchases, work to turn that around. Clarify timelines and the support that can be provided.

PROCUREMENT METHODSEMERGENCY PURCHASES

EMERGENCY PURCHASESWHAT: A PURCHASE IS REQUIRED TO ADDRESS AN IMMEDIATE DANGER TOTHE PUBLIC HEALTHPUBLIC SAFETYPUBLIC WELFAREOR OTHER SUBSTANTIAL LOSS TO THE STATE.[287.057(5) FS]

EMERGENCY PURCHASESPROCEDUREAGENCY HEAD MAKES A WRITTEN DETERMINATION OF THE REQUIREMENT FOR EMERGENCY ACTION (PUR 7800) WITHIN 30 DAYS.OBTAIN AND DOCUMENT PRICING FROM AT LEAST TWO PROSPECTIVE VENDORS, UNLESS THE AGENCY ALSO MAKES A WRITTEN DETERMINATION THAT THE TIME REQUIRED WILL INCREASE THE IMMEDIATE DANGER OR LOSS

EMERGENCY PURCHASESPROCEDURE (CONT.)FURNISH TO DMS ALL WRITTEN DETERMINATIONS CERTIFIED UNDER OATH AND ANY OTHER DOCUMENTS RELATING TO THE EMERGENCY ACTION.FURNISH A COPY TO THE CFO WITH THE VOUCHER AUTHORIZING PAYMENT.

EMERGENCY PURCHASESPROCEDURE (CONT.) [60A-1.046, FAC]State Purchasing will not approve any emergency purchase, as the burden of proof rests with the certifying officerEmergency certifications on form PUR 7800 will be reviewed by State Purchasing

PERSPECTIVEGET YOUR CUSTOMERS WHAT THEY NEED WHEN THEY NEED ITPLAN AHEAD TO THE EXTENT POSSIBLEOBTAIN THE BEST VALUE POSSIBLEDO NOT MISREPRESENT A N0N-EMERGENCY AS AN EMERGENCY

PUBLIC RECORDS FRAUDS.839.13 FS: if anypublic officer, or employeeofa public agency, shall falsifyany recordor shall knowingly and willfullyconceal any issue, or shallfalsify any documentor be in anywise concerned therein, the personshall be guilty of a misdemeanor punishable as provided in s. 775.082 or s.775.083.

PUBLIC RECORDS FRAUDFla. Stat. 775.082 & 775.083 775.082 Penalties; applicability of sentencing structures; mandatory minimum sentences for certain re-offenders previously released from prison.775.083 Fines.

OFFICIAL MISCONDUCTS.838.022 FS: (1)It is unlawful for a public servant, with corrupt intent to obtain a benefit for any person or to cause harm to another, to: (a)Falsify, or cause another person to falsify, any official record or official document; (b)Conceal, cover up, destroy, mutilate, or alter any official record or official document or cause another person to perform such an act; or (c)Obstruct, delay, or prevent the communication of information relating to the commission of a felony that directly involves or affects the public agency or public entity served by the public servant.

CSP MEANS COMPETITIVE SEALED PROPOSALS. THE SINGLE SOURCE/SOLE SOURCE DISTINCTION: IN FL PUBLIC PURCHASING A DISTINCTION WITHOUT A DIFFERENCE.SOME ARE MANDATORY (TO A POINT) SOME ARE OPTIONAL, ALL HAVE ADMINISTRATIVE TASKS TO SOME DEGREE DONE. WHAT TASKS ARE DONE?THIS FY TO DATE, 39% OF PO SPEND HAS BEEN ON STCsWE ARE ADDING SURVEY TOOLS TO THE STCs FOR YOUR FEEDBACK.THE MYRIAD OF IT CONSULTANT STCs ARE EXPIRING, TO BE REPLACED BY ONE MULTI-VENDOR STCWHAT OTHER NONPROFIT CORPORATION IS THE TARGET OF THE LAST PHRASE?WHAT DOES THIS MEAN?WHAT CAN YOU DO ABOUT DECIDING WHEN TO USE THIS LANGUAGE?SO, WHATS THIS PROGRAM ABOUT? PRICING? SOMETHING ELSE?WHAT SPECIFICALLY ARE PURCHASING AGENTS EXPECTED TO DO?WHATS THIS MEAN? WHY THE PRINTING EXCEPTION?WHEN WOULD YOU PUT THIS IN A SOLICITATION?DO WE GENERALLY STAY 100% ON TOP OF THIS?WHATS MEANT BY ADMINISTRATIVE EFFICIENCIES?TO DATE WE HAVE ONE ACTIVE SOLICITATION, QUICK COPY SERVICES, WITH AWARD OF A RANGE OF PRODUCTS/SERVICES BASED ON DISCOUNT FROM AVERAGE RETAIL PRICES DETERMINED BY SURVEYTHERE IS NO LONGER A $150,000 ANNUAL THRESHOLD. WHAT ENSUES FROM THIS CHANGE?THIS AUTHORITY DOES NOT APPLY TO OTHER ELIGIBLE USERS.WHAT IS ART?SHOULD DOCUMENT ALL QUOTE SOLICITATIONS AND RESULTS.WHAT ANTI-COMPETITIVE PRACTICES MAY OCCUR IN INFORMAL BIDDING? E.G. TARGETED VENDOR LIST TO AFFECT OUTCOME, UNEQUAL INFORMATION OR TIME TO RESPONDMODEL PROCUREMENT CODE SUBSUMES ITN UNDER RFP. DISCUSSION?BECAUSE ITB IS THE MOST PRICE COMPETITIVE.

WHY IS ITN LESS COMPETITIVE?EXPLAIN RANKING OF THESE PURCHASING PROCESSES IN TERMS OF FLEXIBILITY.WHAT ARE THE IMPLICATIONS OF THE SIMULTANEITY REQUIREMENT?WHAT MIGHT BE SOME OF THE OTHER FACTORS?DO ALL THE REASONS HAVE TO APPLY? JUST NUMBER ONE

COMPARE SERIAL TO CONCURRENT USE OF THE SHORT LISTYOU MAY FIND WEVE TRAINED VENDORS TOO WELL TO JUST RESPOND TO OUR REQUIREMENTS, AND MAY HAVE TO URGE ALTERNATIVE THINKING.RESPONSE REQUESTING MORE INFORMATION STOPS THE CLOCK.JUSTIFICATIONS ARE OFTEN MORE SITUATIONAL THAN ABSOLUTE, I.E. A REFLECTION OF IMPERFECT COMPETITION OR A PERCEIVED NEED FOR CONTINUITY NOT SUFFICIENTLY ADDRESSED IN AN EARLIER ACQUISITIONINDICES SUCH AS THE CPI AND PPIIF YOU CANT HELP THEM, THEY DONT NEED YOU.WHAT HOMEWORK SHOULD YOU DO? E.G. CONSIDER COMPANY & INDUSTRY NEEDS, TIMING, CONTRACT TERM, WHAT OTHERS HAVE DONE, WHAT THIS FIRM HAS DONE FOR OTHERS, GOODWILL.WHAT DOES THE LAST POINT MEAN?RE POINTS ONE AND FOUR: IS LEADING THEM INTO ILLEGAL OR UNETHICAL BEHAVIOR HELPING?WHATS THIS HAVE TO DO WITH EMERGENCY PURCHASES? (THE WRITTEN CERTIFICATION)WHATS THIS HAVE TO DO WITH AN EMERGENCY PURCHASE? (THE WRITTEN CERTIFICATION) WHAT OTHER APPLICATIONS? (E.G. SINGLE SOURCE, QUOTES)